SAN FRANCISCO / North Beach tenants lose eviction ruling

Tenants of a six-unit North Beach apartment building have lost a round in their three-year battle against eviction by landlords who want to sell the units as tenancies-in-common.

More than a year after North Beach Partners LLC issued eviction notices for tenants at 424-434 Francisco St., a Superior Court judge ruled in July 2005 that the firm had violated a law that requires sellers of divided properties to notify the state Department of Real Estate and obtain a report spelling out financing plans for prospective buyers.

But the state First District Court of Appeal in San Francisco overturned the ruling Wednesday, saying the tenants' claim was barred by a November 2004 state ballot initiative that allows someone to sue only if they are harmed by an unfair business.

The case is being closely watched by property owners and renters as a test case for tenancies-in-common, in which residents collectively own the building and share the mortgage.

Andrew Zacks, a lawyer for the owners, said the court recognized that "the government cannot force people to be landlords" and can evict tenants without going through the state reporting process.